NB&T Financial (NBTF) 8-K NB&T Financial Reports Earnings for Second Quarter 2014

EXHIBIT 99.1

NB&T Financial Reports Earnings for Second Quarter 2014

July 15, 2014

NB&T Financial Group, Inc. (Nasdaq: NBTF), parent company of The National Bank and Trust Company (“NB&T”), Wilmington, Ohio, announced net income for the second quarter of 2014 of $1.3 million, or $.39 per share, compared to net income of $1.1 million, or $.33 per share, for the second quarter of 2013. The increase in net income is due primarily to a $1.2 million lower loan loss provision in the second quarter of 2014 compared to the same period last year. This lower provision was partially offset by gains on security sales of $817,000 and a gain on extinguishment of long-term debt of approximately $300,000 in the second quarter of 2013. Net income for the first six months of 2014 was $2.4 million, or $.71 per share, compared to $2.2 million, or $.63 per share, for the same period in 2013. For the six months of 2014, a lower provision of $1.0 million was offset by the above mentioned gains; however, non-interest expenses additionally were down approximately $300,000 for the first six months of 2014 compared to the same period in 2013.

Net interest income was $5.3 million for the second quarter of 2014, compared to $5.1 million for the second quarter of 2013. Net interest margin increased to 3.51% for the second quarter of 2014, compared to 3.34% for the same quarter last year. Net interest income for the first half of 2014 was $10.6 million, compared to $10.5 million for the first half of 2013. Net interest income has increased primarily due to increased investment in longer term tax-exempt municipal securities and slower prepayments on mortgage-related securities. As a result, investment interest income increased $477,000 and $558,000 for the three and six months ended June 30, 2014 compared to the same periods last year. Loan interest income was down $379,000 and $733,000 for the three and six months ended June 30, 2014 compared to the same periods in 2013. The decreases were due primarily to lower average loan balances and continued repricing of new and variable rate loans to lower rates. This lower loan interest income was offset by lower interest expense of $116,000 and $259,000 for the second quarter and first six months of 2014 compared to the same periods in 2013 due to continued runoff of higher priced time deposits.

The provision for loan losses for the second quarter and first six months of 2014 was $135,000 and $410,000, compared to $1.3 million and $1.4 million for the same periods last year. During the second quarter of 2013, the provision for loan losses increased approximately $1.2 million to add specific loan reserves for one commercial loan that was subsequently charged-off. Net charge-offs were $431,000 in the second quarter of 2014, compared to $167,000 in the second quarter of 2013. Year to date net charge-offs for 2014 were $749,000, compared to $397,000 for the first six months of 2013. Despite the increase in charge-offs, asset quality improved during the first six months of 2014. Non-performing loans declined to $3.2 million at June 30, 2014, from $5.8 million and $9.1 million at December 31, 2013 and June 30, 2013 respectively, due primarily to the resolution of problem loans. Other real estate owned also decreased to $1.6 million at June 30, 2014 from $1.9 million at June 30, 2013.

President & CEO, John Limbert, commented, “The improvements in asset quality have directly resulted in lower loan loss provisions and, combined with lower expenses, have given us our best quarter since 2010.”

Total non-interest income was $2.1 million for the second quarter of 2014, compared to $3.3 million for the second quarter of 2013. During the second quarter of 2013, the Company realized a gain of $300,000 on the extinguishment of $1.0 million in trust preferred debt and approximately $817,000 in securities sale gains. There were no such gains during the second quarter or first six months of 2014. As a result, non-interest income for the first six months of 2014 was $4.0 million, compared to $5.2 million for the same period last year. In addition, total NSF fees for the first half of 2014 have declined $152,000, or 13%, when compared to the first six months of 2013.

Total non-interest expense was $5.6 million for each of the second quarter of 2014 and 2013. Non-interest expense for the first six months of 2014 was $11.2 million, compared to $11.5 million for the same period last year. The expense decrease is primarily due to a $164,000 decrease in net costs associated with the operation of other real estate and a decrease of approximately $171,000 in state taxes due to Ohio’s new financial institution tax replacing Ohio’s bank franchise tax.

On June 17, 2014 the Board of Directors declared a dividend of $0.30 per share, payable July 21, 2014 to shareholders of record on June 30, 2014.

SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except per share data)

(Unaudited)

	Three Months Ending															Six Months Ending
	6/30/2014			3/31/2014			12/31/2013			9/30/2013			6/30/2013			6/30/2014			6/30/2013
Statements of Income
Interest income	$	5,684		$	5,623		$	5,480		$	5,510		$	5,586		$	11,307		$	11,482
Interest expense		357			376			414			438			473			733			992
Net interest income		5,327			5,247			5,066			5,072			5,113			10,574			10,490
Provision for loan losses		135			275			750			400			1,300			410			1,440
Other non-interest income		2,071			1,968			2,051			2,147			2,450			4,039			4,436
Net gains on sales of securities		—			—			227			—			817			—			781
Total non-interest income		2,071			1,968			2,278			2,147			3,267			4,039			5,217
Total non-interest expenses		5,590			5,603			5,377			5,523			5,605			11,193			11,491
Income before income taxes		1,673			1,337			1,217			1,296			1,475			3,010			2,776
Income taxes		337			251			200			228			336			588			618
Net income	$	1,336		$	1,086		$	1,017		$	1,068		$	1,139		$	2,422		$	2,158
Per Share Data
Basic earnings per share	$	0.39		$	0.32		$	0.30		$	0.31		$	0.33		$	0.71		$	0.63
Diluted earnings per share		0.38			0.32			0.30			0.31			0.33			0.70			0.63
Dividends per share		0.30			0.30			0.30			0.30			0.30			0.60			0.60
Book value at quarter end		20.68			20.25			19.84			19.89			19.83			20.68			19.83
Average basic shares outstanding		3,430			3,430			3,426			3,416			3,415			3,430			3,418
Average diluted shares outstanding		3,439			3,437			3,436			3,438			3,426			3,438			3,426
Balance Sheet Items (Quarter End)
Total assets	$	652,196		$	660,964		$	638,312		$	645,410		$	659,827		$	652,196		$	659,827
Securities		163,039			154,848			138,098			138,818			134,154			163,039			134,154
Loans, including loans held for sale		390,586			389,945			399,496			404,545			410,202			390,586			410,202
Allowance for loan losses		3,715			4,010			4,053			5,884			5,803			3,715			5,803
Deposits		560,777			572,127			550,800			558,075			572,926			560,777			572,926
Borrowings		14,310			14,310			14,310			14,310			14,310			14,310			14,310
Total shareholders’ equity		70,937			69,443			68,035			68,127			67,682			70,937			67,682
Assets Under Management
Total assets	$	652,196		$	660,964		$	638,312		$	645,410		$	659,827		$	652,196		$	659,827
Cash management sweep accounts		48,196			48,209			44,039			44,852			38,019			48,196			38,019
Market value of trust assets		263,208			256,835			254,403			246,043			237,884			263,208			237,884
Market value of brokerage assets		85,005			82,025			80,321			78,757			76,668			85,005			76,668
Loans serviced for others		41,546			40,879			41,794			43,024			42,496			41,546			42,496
Total assets under management	$	1,090,151		$	1,088,912		$	1,058,869		$	1,058,086		$	1,054,894		$	1,090,151		$	1,054,894
Selected Financial Ratios
Return on average assets (annualized)		0.82	%		0.67	%		0.62	%		0.65	%		0.69	%		0.74	%		0.65	%
Return on average equity (annualized)		7.67			6.44			5.90			6.22			6.48			7.06			6.15
Dividend payout ratio		76.92			93.75			100.00			96.77			90.91			84.51			95.24
Net interest margin		3.51			3.48			3.33			3.33			3.34			3.50			3.42
Non-interest expense to total revenue		75.56			77.66			73.22			76.51			66.89			76.60			73.16
Average loans to average total assets		59.27			59.37			61.25			62.32			61.10			59.30			60.27
Asset Quality
Nonaccrual loans	$	3,172		$	4,640		$	5,734		$	8,273		$	9,006		$	3,172		$	9,006
Accruing and 90 or more days past due		16			19			32			30			73			16			73
Total nonperforming loans	$	3,188		$	4,659		$	5,766		$	8,303		$	9,079		$	3,188		$	9,079
Other real estate owned		1,601			1,050			1,224			1,426			1,894			1,601			1,894
Net charge-offs		431			318			2,581			319			167			749			397
Non-performing loans to total loans		0.82	%		1.19	%		1.44	%		2.05	%		2.21	%		0.82	%		2.21	%
Loan loss allowance to total loans		0.95			1.03			1.01			1.46			1.42			0.95			1.42
Loan loss allowance to non-performing loans		116.53			86.07			70.29			70.87			63.92			116.53			63.92
Accruing loans 30+ days past due to total loans		0.60			0.08			0.05			0.25			0.57			0.60			0.57
Net charge-offs to average loans		0.44			0.33			2.57			0.31			0.16			0.39			0.20
Capital
Average equity to average total assets		10.64	%		10.36	%		10.49	%		10.43	%		10.60	%		10.50	%		10.57	%
Tier 1 leverage ratio**		11.56			11.44			11.56			11.49			11.23			11.56			11.19
Total risk-based capital ratio**		18.41			19.36			19.10			19.22			18.98			18.41			18.95

** Estimated for current quarter end